CIRRUS LOGIC, INC., 10-Q filed on 8/2/2022
Quarterly Report
v3.22.2
Cover - shares
 3 Months Ended
Jun. 25, 2022
Jul. 29, 2022
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 25, 2022  
Document Transition Report false  
Entity File Number 0-17795  
Entity Registrant Name CIRRUS LOGIC, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 77-0024818  
Entity Address, Address Line One 800 W. 6th Street  
Entity Address, City or Town Austin,  
Entity Address, State or Province TX  
Entity Address, Postal Zip Code 78701  
City Area Code (512)  
Local Phone Number 851-4000  
Title of 12(b) Security Common stock, $0.001 par value  
Trading Symbol CRUS  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   55,940,364
Amendment Flag false  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q1  
Current Fiscal Year End Date --03-25  
Entity Central Index Key 0000772406  
v3.22.2
Consolidated Condensed Balance Sheets - USD ($)
$ in Thousands
Jun. 25, 2022
Mar. 26, 2022
Current assets:    
Cash and cash equivalents $ 379,335 $ 369,814
Marketable securities 18,397 10,601
Accounts receivable, net 206,272 240,264
Inventories 174,370 138,436
Prepaid assets 36,689 40,822
Other current assets 45,945 40,078
Total current assets 861,008 840,015
Long-term marketable securities 55,965 63,749
Right-of-use lease assets 168,680 171,003
Property and equipment, net 157,165 157,077
Intangibles, net 149,984 158,145
Goodwill 435,936 435,791
Deferred tax assets 16,928 11,068
Long-term prepaid wafers 195,000 195,000
Other assets 65,236 91,552
Total assets 2,105,902 2,123,400
Current liabilities:    
Accounts payable 121,451 115,417
Accrued salaries and benefits 41,026 65,261
Software license agreements 17,983 21,736
Current lease liabilities 13,988 14,680
Acquisition-related liabilities 30,964 30,964
Other accrued liabilities 27,184 16,725
Total current liabilities 252,596 264,783
Long-term liabilities:    
Software license agreements 9,184 13,563
Non-current income taxes 73,735 73,383
Non-current lease liabilities 159,344 163,162
Long-term acquisition-related liabilities 11,856 8,692
Total long-term liabilities 254,119 258,800
Stockholders' equity:    
Capital stock 1,596,684 1,578,427
Accumulated earnings 5,894 23,435
Accumulated other comprehensive loss (3,391) (2,045)
Total stockholders' equity 1,599,187 1,599,817
Total liabilities and stockholders' equity $ 2,105,902 $ 2,123,400
v3.22.2
Consolidated Condensed Statements Of Income - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Jun. 25, 2022
Jun. 26, 2021
Income Statement [Abstract]    
Net sales $ 393,639 $ 277,253
Cost of sales 191,005 137,307
Gross profit 202,634 139,946
Operating expenses    
Research and development 109,716 85,696
Selling, general and administrative 38,642 35,147
Total operating expenses 148,358 120,843
Income from operations 54,276 19,103
Interest income 523 1,020
Interest expense (218) (259)
Other income (expense) 506 (242)
Income before income taxes 55,087 19,622
Provision for income taxes 15,380 2,413
Net income $ 39,707 $ 17,209
Basic earnings per share (in dollars per share) $ 0.71 $ 0.30
Diluted earnings per share (in dollars per share) $ 0.69 $ 0.29
Basic weighted average common shares outstanding (in shares) 56,277 57,582
Diluted weighted average common shares outstanding (in shares) 57,804 59,513
v3.22.2
Consolidated Condensed Statements Of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended
Jun. 25, 2022
Jun. 26, 2021
Statement of Comprehensive Income [Abstract]    
Net income $ 39,707 $ 17,209
Other comprehensive income (loss), before tax    
Foreign currency translation loss (967) (52)
Unrealized loss on marketable securities (480) (1,123)
Benefit for income taxes 101 236
Comprehensive income $ 38,361 $ 16,270
v3.22.2
Consolidated Condensed Statements Of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Jun. 25, 2022
Jun. 26, 2021
Cash flows from operating activities:    
Net income $ 39,707 $ 17,209
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation and amortization 16,515 11,898
Stock-based compensation expense 18,138 14,985
Deferred income taxes (5,860) (9,270)
Loss on retirement or write-off of long-lived assets 292 0
Other non-cash adjustments 99 108
Net change in operating assets and liabilities:    
Accounts receivable, net 33,992 (27,822)
Inventories (35,934) (19,459)
Other assets 549 (6,457)
Accounts payable and other accrued liabilities (20,327) (21,740)
Income taxes payable 24,030 13,752
Acquisition-related liabilities 3,164 0
Net cash provided by (used in) operating activities 74,365 (26,796)
Cash flows from investing activities:    
Maturities and sales of available-for-sale marketable securities 4,694 49,158
Purchases of available-for-sale marketable securities (5,186) (53,969)
Purchases of property, equipment and software (6,776) (10,835)
Investments in technology (448) (1,068)
Net cash used in investing activities (7,716) (16,714)
Cash flows from financing activities:    
Issuance of common stock, net of shares withheld for taxes 120 746
Repurchase of stock to satisfy employee tax withholding obligations (866) (1,772)
Repurchase and retirement of common stock (56,382) (12,501)
Net cash used in financing activities (57,128) (13,527)
Net increase (decrease) in cash and cash equivalents 9,521 (57,037)
Cash and cash equivalents at beginning of period 369,814 442,164
Cash and cash equivalents at end of period $ 379,335 $ 385,127
v3.22.2
Consolidated Condensed Statements Of Stockholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-In Capital
Accumulated Earnings (Deficit)
Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Mar. 27, 2021   57,652      
Beginning balance at Mar. 27, 2021 $ 1,389,005 $ 58 $ 1,498,761 $ (112,689) $ 2,875
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 17,209     17,209  
Change in unrealized gain (loss) on marketable securities, net of tax (887)       (887)
Change in foreign currency translation adjustments (52)       (52)
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes (in shares)   61      
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes (1,028)   745 (1,773)  
Repurchase and retirement of common stock (in shares)   (166)      
Repurchase and retirement of common stock (12,501)     (12,501)  
Stock-based compensation 14,985   14,985    
Ending balance (in shares) at Jun. 26, 2021   57,547      
Ending balance at Jun. 26, 2021 1,406,731 $ 58 1,514,491 (109,754) 1,936
Beginning balance (in shares) at Mar. 26, 2022   56,596      
Beginning balance at Mar. 26, 2022 1,599,817 $ 57 1,578,370 23,435 (2,045)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 39,707     39,707  
Change in unrealized gain (loss) on marketable securities, net of tax (379)       (379)
Change in foreign currency translation adjustments (967)       (967)
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes (in shares)   28      
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes (746)   120 (866)  
Repurchase and retirement of common stock (in shares)   (725)      
Repurchase and retirement of common stock (56,383) $ (1)   (56,382)  
Stock-based compensation 18,138   18,138    
Ending balance (in shares) at Jun. 25, 2022   55,899      
Ending balance at Jun. 25, 2022 $ 1,599,187 $ 56 $ 1,596,628 $ 5,894 $ (3,391)
v3.22.2
Basis of Presentation
 3 Months Ended
Jun. 25, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of PresentationThe unaudited consolidated condensed financial statements have been prepared by Cirrus Logic, Inc. (“Cirrus Logic,” “we,” “us,” “our,” or the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “Commission”).  The accompanying unaudited consolidated condensed financial statements do not include complete footnotes and financial presentations.  As a result, these financial statements should be read along with the audited consolidated financial statements and notes thereto for the year ended March 26, 2022, included in our Annual Report on Form 10-K filed with the Commission on May 20, 2022.  In our opinion, the financial statements reflect all material adjustments, including normal recurring adjustments, necessary for a fair presentation of the financial position, operating results and cash flows for those periods presented.  The preparation of financial statements in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect reported assets, liabilities, revenues and expenses.  Actual results could differ from those estimates and assumptions.  Moreover, the results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the entire year.
v3.22.2
Recently Issued Accounting Pronouncements
 3 Months Ended
Jun. 25, 2022
Accounting Policies [Abstract]  
Recently Issued Accounting Pronouncements Recently Issued Accounting Pronouncements
In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured at the acquisition date in accordance with Revenue from Contracts with Customers (Topic 606) as if the acquirer had originated the contracts. Prior to the issuance of this ASU, contract assets and liabilities were recognized at fair value on the acquisition date. This ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within that fiscal year, with early adoption permitted, and should be applied on a prospective basis. The Company is currently evaluating the impact of this guidance, but does not expect a material impact to the financial statements upon adoption.

In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832) – Disclosures by Business Entities about Government Assistance, which requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution type accounting model. The disclosures would require information about the nature and related policy used for the transactions, the line items on the balance sheet and income statement that are affected and the amounts applicable to each financial statement line item, and significant terms and conditions of the transactions. This ASU is effective for financial statements issued for annual periods beginning after December 15, 2021, with early adoption permitted, and can be applied on a prospective or retrospective basis. The Company is currently evaluating the impact of this guidance, but does not expect a material impact to the financial statements upon adoption.
v3.22.2
Marketable Securities
 3 Months Ended
Jun. 25, 2022
Marketable Securities [Abstract]  
Marketable Securities Marketable Securities
The Company’s investments have been classified as available-for-sale securities in accordance with U.S. GAAP.  Marketable securities are categorized on the consolidated condensed balance sheet as "Marketable securities", within the short-term or long-term classification, as appropriate.

The following table is a summary of available-for-sale securities at June 25, 2022 (in thousands):
As of June 25, 2022Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
(Net Carrying
Amount)
Corporate debt securities$70,540 $— $(2,577)$67,963 
Non-U.S. government securities510 — (11)499 
U.S. Treasury securities5,730 — (197)5,533 
Agency discount notes385 — (18)367 
Total securities$77,165 $— $(2,803)$74,362 

The Company typically invests in highly-rated securities with original maturities generally ranging from one to three years. The Company's specifically identified gross unrealized losses of $2.8 million related to securities with total amortized costs of approximately $77.2 million at June 25, 2022. Securities in a continuous unrealized loss position for more than 12
months as of June 25, 2022 had an aggregate amortized cost of $9.0 million and an aggregate unrealized loss of $0.4 million. The Company may sell certain of its marketable securities prior to their stated maturities for strategic reasons including, but not limited to, anticipated or actual changes in credit rating and duration management.  The Company records an allowance for credit loss when a decline in investment market value is due to credit-related factors. When evaluating an investment for impairment, the Company reviews factors including the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer, changes in market interest rates and whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s cost basis. As of June 25, 2022, the Company does not consider any of its investments to be impaired.

The following table is a summary of available-for-sale securities at March 26, 2022 (in thousands):
As of March 26, 2022Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
(Net Carrying
Amount)
Corporate debt securities$70,296 $2 $(2,133)$68,165 
Non-U.S. government securities509 — (9)500 
U.S. Treasury securities5,483 — (169)5,314 
Agency discount notes385 — (14)371 
Total securities$76,673 $2 $(2,325)$74,350 

The Company's specifically identified gross unrealized losses of $2.3 million related to securities with total amortized costs of approximately $75.5 million at March 26, 2022. Securities in a continuous unrealized loss position for more than 12 months as of March 26, 2022 had an aggregate amortized cost of $3.5 million and an aggregate unrealized loss of $0.1 million. As of March 26, 2022, the Company did not consider any of its investments to be impaired.

The cost and estimated fair value of available-for-sale securities by contractual maturities were as follows (in thousands):
June 25, 2022March 26, 2022
AmortizedEstimatedAmortizedEstimated
CostFair ValueCostFair Value
Within 1 year$18,744 $18,397 $10,697 $10,601 
After 1 year58,421 55,965 65,976 63,749 
Total$77,165 $74,362 $76,673 $74,350 
v3.22.2
Fair Value of Financial Instruments
 3 Months Ended
Jun. 25, 2022
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
The Company has determined that the only material assets and liabilities in the Company’s financial statements that are required to be measured at fair value on a recurring basis are the Company’s cash equivalents and marketable securities portfolio.  The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

•Level 1 - Quoted prices in active markets for identical assets or liabilities.
•Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company’s cash equivalents and marketable securities portfolio consist of money market funds, commercial paper, debt securities, non-U.S. government securities, U.S Treasury securities and securities of U.S. government-sponsored enterprises and are reflected on our consolidated condensed balance sheets under the headings cash and cash equivalents,
marketable securities, and long-term marketable securities.  The Company determines the fair value of its marketable securities portfolio by obtaining non-binding market prices from third-party pricing providers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value.

The Company's long-term revolving credit facility, described in Note 9, bears interest at a base rate plus applicable margin or LIBOR plus applicable margin. As of June 25, 2022, there are no amounts drawn under the credit facility and the fair value is zero.

As of June 25, 2022 and March 26, 2022, the Company has no material Level 3 assets or liabilities.  There were no transfers between Level 1, Level 2, or Level 3 measurements for the three months ended June 25, 2022. 

The following summarizes the fair value of our financial instruments at June 25, 2022 (in thousands):
Quoted Prices
in Active
Markets for
Identical
Assets
Level 1		Significant
Other
Observable
Inputs
Level 2		Significant
Unobservable
Inputs
Level 3		Total
Assets:    
Cash equivalents    
Money market funds$302,044 $— $— $302,044 
Available-for-sale securities    
Corporate debt securities$— $67,963 $— $67,963 
Non-U.S. government securities— 499 — 499 
U.S. Treasury securities5,533 — — 5,533 
Agency discount notes— 367 — 367 
$5,533 $68,829 $— $74,362 

The following summarizes the fair value of our financial instruments at March 26, 2022 (in thousands):
Quoted Prices
in Active
Markets for
Identical
Assets
Level 1		Significant
Other
Observable
Inputs
Level 2		Significant
Unobservable
Inputs
Level 3		Total
Assets:
Cash equivalents    
Money market funds$217,151 $— $— $217,151 
Commercial paper— 249 — 249 
$217,151 $249 $— $217,400 
Available-for-sale securities    
Corporate debt securities$— $68,165 $— $68,165 
Non-U.S. government securities— 500 — 500 
U.S. Treasury securities5,314 — — 5,314 
Agency discount notes— 371 — 371 
$5,314 $69,036 $— $74,350 
v3.22.2
Derivative Financial Instruments
 3 Months Ended
Jun. 25, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Foreign Currency Forward Contracts

The Company uses foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on non-functional currency balance sheet exposures. The Company recognizes both the gains and losses on foreign currency forward contracts and the gains and losses on the remeasurement of non-functional currency assets and liabilities within "Other income (expense)" in the consolidated condensed statements of income. The Company does not apply hedge accounting to these foreign currency derivative instruments.

As of June 25, 2022, the Company held one foreign currency forward contract denominated in British Pound Sterling with a notional value of $1.8 million. The fair value of this contract was not material as of June 25, 2022.

The before-tax effect of derivative instruments not designated as hedging instruments was as follows (in thousands):
Three Months Ended
June 25,June 26,
20222021Location
Gain (loss) recognized in income:
Foreign currency forward contracts$(219)$332 Other income (expense)
v3.22.2
Accounts Receivable, net
 3 Months Ended
Jun. 25, 2022
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
Accounts Receivable, net Accounts Receivable, netThe following are the components of accounts receivable, net (in thousands):
June 25,March 26,
20222022
Gross accounts receivable$206,272 $240,264 
Allowance for doubtful accounts— — 
Accounts receivable, net$206,272 $240,264 
v3.22.2
Inventories
 3 Months Ended
Jun. 25, 2022
Inventory Disclosure [Abstract]  
Inventories InventoriesInventories are comprised of the following (in thousands):
June 25,March 26,
20222022
Work in process$109,461 $95,188 
Finished goods64,909 43,248 
$174,370 $138,436 
v3.22.2
Acquisition
 3 Months Ended
Jun. 25, 2022
Business Combination and Asset Acquisition [Abstract]  
Acquisition Acquisition
On July 20, 2021, the Company completed the acquisition of Lion Semiconductor, Inc. ("Lion") (the "Acquisition"). Lion's switched-capacitor architectures deliver higher efficiency and better heat dissipation for the rapidly developing fast-charging market and are used today in numerous flagship and mid-tier smartphones. The Acquisition is expected to bring unique intellectual property and products for power applications in smartphones, laptops and other devices and accelerate growth of the Company’s high-performance mixed-signal product line.

As a result of acquiring 100% of the outstanding share capital of Lion, Lion became a wholly-owned subsidiary of the Company. This transaction is accounted for as a business combination using the acquisition method of accounting. All of the acquired assets and liabilities of Lion have been recorded at their respective fair values as of the acquisition date. Transaction costs have been expensed as incurred.

At the acquisition date, total consideration transferred was approximately $280.5 million, inclusive of $4.9 million in cash acquired. During the third quarter of fiscal year 2022, an additional $1.2 million of consideration was paid related to
contractual post-closing adjustment provisions. The remaining merger consideration of $31.0 million is subject to indemnity provisions as outlined in the merger agreement and is recorded as a liability as of June 25, 2022.

In addition, $25.4 million of the merger consideration relates to retention agreements with certain key employees that are subject to continued employment with the Company. The merger consideration subject to retention agreements is treated as compensation expense and is recognized over the retention period in "Research and development" expense in the consolidated condensed statements of income.

The excess of the purchase price over the net assets acquired is recorded as goodwill and is attributable primarily to expected growth in the scope of and market opportunities of the products and customer base of Lion. None of the goodwill is deductible for income tax purposes.

The following table presents the allocation of the purchase price at the date of acquisition (in thousands):

July 20, 2021
Cash$4,924 
Account receivable6,725 
Inventory7,675 
Manufacturing advances8,502 
Other current assets321 
Intangibles163,700 
Goodwill148,418 
Other non-current assets453 
Current liabilities(2,927)
Deferred tax liabilities(25,016)
Total purchase price$312,775 
v3.22.2
Revolving Credit Facility
 3 Months Ended
Jun. 25, 2022
Line of Credit Facility [Abstract]  
Revolving Credit Facility Revolving Credit Facility
On July 8, 2021, the Company entered into a second amended and restated credit agreement (the “Second Amended Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto. The Second Amended Credit Agreement provides for a $300 million senior secured revolving credit facility (the “Revolving Credit Facility”). The Revolving Credit Facility matures on July 8, 2026 (the “Maturity Date”). The Revolving Credit Facility is required to be guaranteed by all of Cirrus Logic’s material domestic subsidiaries (the "Subsidiary Guarantors"). The Revolving Credit Facility is secured by substantially all the assets of Cirrus Logic and any Subsidiary Guarantors, except for certain excluded assets.

Borrowings under the Revolving Credit Facility may, at Cirrus Logic’s election, bear interest at either (a) a base rate plus the applicable margin ("Base Rate Loans") or (b) a LIBOR rate plus the applicable margin ("LIBOR Rate Loans"). The applicable margin ranges from 0% to 0.75% per annum for Base Rate Loans and 1.00% to 1.75% per annum for LIBOR Rate Loans based on the ratio of consolidated funded indebtedness to consolidated EBITDA for the most recently ended period of four consecutive fiscal quarters (the “Consolidated Leverage Ratio”). The Second Amended Credit Agreement further provides a method for determining an alternative rate of interest if the LIBOR Rate is no longer available or upon the occurrence of certain other events. A Commitment Fee accrues at a rate per annum ranging from 0.175% to 0.275% (based on the Consolidated Leverage Ratio) on the average daily unused portion of the commitment of the lenders.

The Second Amended Credit Agreement contains customary affirmative covenants, including, among others, covenants regarding the payment of taxes and other obligations, maintenance of insurance, reporting requirements, and compliance with applicable laws and regulations. Further, the Second Amended Credit Agreement contains customary negative covenants limiting the ability of Cirrus Logic or any Subsidiary to, among other things, incur debt, grant liens, make investments, effect certain fundamental changes, make certain asset dispositions, and make certain restricted payments. The Revolving Credit Facility also contains certain financial covenants providing that (a) the ratio of consolidated funded indebtedness (minus up to $200 million of unrestricted cash and cash equivalents available on such date) to consolidated EBITDA for the prior four consecutive quarters must not be greater than 3.00 to 1.00 (the “Consolidated Net Leverage Ratio”)
and (b) the ratio of consolidated EBITDA for the prior four consecutive quarters to consolidated interest expense paid or payable in cash for the prior four consecutive quarters must not be less than 3.00 to 1.00 (the “Consolidated Interest Coverage Ratio”).As of June 25, 2022, the Company had no amounts outstanding under the Revolving Credit Facility and was in compliance with all covenants under the Second Amended Credit Agreement.
v3.22.2
Revenues
 3 Months Ended
Jun. 25, 2022
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Disaggregation of revenue

We disaggregate revenue from contracts with customers by product line and ship to location of the customer. Sales are designated in the respective product line categories of Audio and High-Performance Mixed-Signal.

Total net sales based on the product line disaggregation criteria described above are shown in the table below (in thousands).
Three Months Ended
June 25,June 26,
20222021
Audio Products$254,496 $217,355 
High-Performance Mixed-Signal Products139,143 59,898 
$393,639 $277,253 

The geographic regions that are reviewed are China, the United States, and the rest of the world. Total net sales based on the geographic disaggregation criteria described are as follows (in thousands):
Three Months Ended
June 25,June 26,
20222021
China$261,491 $168,325 
United States7,197 6,019 
Rest of World124,951 102,909 
$393,639 $277,253 
Performance obligations

The Company's single performance obligation is the delivery of promised goods to the customer. The promised goods are explicitly stated in the customer contract and are comprised of either a single type of good or a series of goods that are substantially the same, have the same pattern of transfer to the customer, and are neither capable of being distinct nor separable from the other promised goods in the contract. This performance obligation is satisfied upon transfer of control of the promised goods to the customer, as defined per the shipping terms within the customer's contract. The vast majority of the Company's contracts with customers have an original expected term length of one year or less. As allowed by Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers, the Company has not disclosed the value of any unsatisfied performance obligations related to these contracts.

The Company’s products typically include a warranty period of one to three years. These warranties qualify as assurance-type warranties, as goods can be returned for product non-conformance and defect only. As such, these warranties are accounted for under ASC 460, Guarantees, and are not considered a separate performance obligation.

Contract balances

Payments are typically due within 30 to 60 days of invoicing and terms do not include significant financing components or noncash consideration. There have been no material impairment losses on accounts receivable. There are no material contract assets or contract liabilities recorded on the consolidated condensed balance sheets.

Transaction price
The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised goods to the customer. Fixed pricing is the consideration that is agreed upon in the customer contract. Variable pricing includes rebates, rights of return, warranties, price protection and stock rotation. Rebates are granted as a customer account credit, based on agreed-upon sales thresholds. Rights of return and warranty costs are estimated using the "most likely amount" method by reviewing historical returns to determine the most likely customer return rate and applying materiality thresholds. Price protection includes price adjustments available to certain distributors based upon established book price and a stated adjustment period. Stock rotation is also available to certain distributors based on a stated maximum of prior billings.

The Company estimates all variable consideration at the most likely amount that it expects to be entitled to receive. The estimate is based on current and historical information, including recent sales activity and pricing, available to the Company. Variable consideration is only included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company defers all variable consideration that does not meet the revenue recognition criteria.
v3.22.2
Income Taxes
 3 Months Ended
Jun. 25, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our provision for income taxes is based on estimated effective tax rates derived from an estimate of annual consolidated earnings before taxes, adjusted for nondeductible expenses, other permanent items, and any applicable income tax credits.

The following table presents the provision for income taxes (in thousands) and the effective tax rates:
Three Months Ended
June 25,June 26,
20222021
Income before income taxes$55,087 $19,622 
Provision for income taxes$15,380 $2,413 
Effective tax rate27.9 %12.3 %

Our income tax expense was $15.4 million and $2.4 million for the first quarters of fiscal years 2023 and 2022, respectively, resulting in effective tax rates of 27.9% and 12.3%, respectively.  Our effective tax rate for the first quarter of fiscal year 2023 increased significantly year over year and was higher than the federal statutory rate primarily due to a provision in the Tax Cuts and Jobs Act of 2017 whereby research and development expenditures incurred in tax years beginning after December 31, 2021 must be capitalized and amortized ratably over five or fifteen years for tax purposes, depending on the location in which the research activities are conducted. The resulting capitalization of research and experimental costs impacted the calculation of the Company's global intangible low-taxed income ("GILTI"), which is treated as a period cost, beginning in the first quarter of fiscal year 2023. Our effective tax rate for the first quarter of fiscal year 2022 was lower than the federal statutory rate primarily due to the effect of income earned in certain foreign jurisdictions that is taxed below the federal statutory rate.

The Company records unrecognized tax benefits for the estimated risk associated with tax positions taken on tax returns.  At June 25, 2022, the Company had unrecognized tax benefits of $32.9 million, all of which would impact the effective tax rate if recognized.  The Company’s total unrecognized tax benefits are classified as “Non-current income taxes" in the consolidated condensed balance sheets. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes.  As of June 25, 2022, the balance of accrued interest and penalties, net of tax, was $5.4 million. 

On July 27, 2015, the U.S. Tax Court issued an opinion in Altera Corp. et al. v. Commissioner which concluded that the regulations relating to the treatment of stock-based compensation expense in intercompany cost-sharing arrangements were invalid. In 2016 the U.S. Internal Revenue Service appealed the decision to the U.S. Court of Appeals for the Ninth Circuit (the “Ninth Circuit”). On July 24, 2018, the Ninth Circuit issued a decision that was subsequently withdrawn and a reconstituted panel conferred on the appeal. On June 7, 2019, the Ninth Circuit reversed the decision of the U.S. Tax Court and upheld the cost-sharing regulations. On February 10, 2020, Altera Corp. filed a Petition for a Writ of Certiorari with the Supreme Court of the United States, which was denied by the Supreme Court on June 22, 2020. Although the issue is now resolved in the Ninth Circuit, the Ninth Circuit's opinion is not binding in other circuits. The potential impact of this issue on the Company, which is not located within the jurisdiction of the Ninth Circuit, is unclear at this time. We will continue to monitor developments related to this issue and the potential impact of those developments on the Company's current and prior fiscal years.
The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions. Fiscal years 2017 through 2022 remain open to examination by the major taxing jurisdictions to which the Company is subject, although carry forward attributes that were generated in tax years prior to fiscal year 2017 may be adjusted upon examination by the tax authorities if they have been, or will be, used in a future period. 

The Company's fiscal year 2017, 2018, and 2019 federal income tax returns are under examination by the U.S. Internal Revenue Service ("IRS").  The IRS has proposed adjustments that would increase U.S. taxable income related to transfer pricing matters with respect to our U.S. and U.K. affiliated companies, and in the first quarter of fiscal year 2023 issued a Revenue Agent’s Report asserting additional tax of approximately $170.5 million, excluding interest, and imposing penalties of approximately $63.7 million. We do not agree with the IRS's positions and we intend to vigorously dispute the proposed adjustments. We intend to pursue resolution through the administrative process with the IRS Independent Office of Appeals and, if necessary, through judicial remedies. We expect it could take a number of years to reach resolution on these matters. Although the final resolution of these matters is uncertain, the Company believes adequate amounts have been reserved for any adjustments to the provision for income taxes that may ultimately result. However, if the IRS prevails in these matters, the amount of assessed tax, interest, and penalties, if any, could be material and may have an adverse impact on our financial position, results of operations, and cash flows in future periods. The Company is not under an income tax audit in any other major taxing jurisdiction.
v3.22.2
Net Income Per Share
 3 Months Ended
Jun. 25, 2022
Earnings Per Share [Abstract]  
Net Income Per Share Net Income Per Share
Basic net income per share is based on the weighted effect of common shares issued and outstanding and is calculated by dividing net income by the basic weighted average shares outstanding during the period.  Diluted net income per share is calculated by dividing net income by the weighted average number of common shares used in the basic net income per share calculation, plus the equivalent number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares outstanding.  These potentially dilutive items consist primarily of outstanding stock options and restricted stock grants.

The following table details the calculation of basic and diluted earnings per share for the three months ended June 25, 2022 and June 26, 2021 (in thousands, except per share amounts):
Three Months Ended
June 25,June 26,
20222021
Numerator:  
Net income$39,707 $17,209 
Denominator:  
Weighted average shares outstanding56,277 57,582 
Effect of dilutive securities1,527 1,931 
Weighted average diluted shares57,804 59,513 
Basic earnings per share$0.71 $0.30 
Diluted earnings per share$0.69 $0.29 
The weighted outstanding shares excluded from our diluted calculation for the three months ended June 25, 2022 and June 26, 2021 were 386 thousand and 114 thousand, respectively, as the shares were anti-dilutive.
v3.22.2
Commitment and Contingencies
 3 Months Ended
Jun. 25, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Capacity Reservation Agreement

On July 28, 2021, the Company entered into a Capacity Reservation and Wafer Supply Commitment Agreement (the “Capacity Reservation Agreement”) with GLOBALFOUNDRIES Singapore Pte. Ltd. (“GlobalFoundries”) to provide the Company a wafer capacity commitment and wafer pricing for Company products for calendar years 2022-2026 (the “Commitment Period”).
The Capacity Reservation Agreement requires GlobalFoundries to provide, and the Company to purchase, a defined number of wafers on a quarterly basis for the Commitment Period, subject to shortfall payments. In exchange for GlobalFoundries’ capacity commitment, the Company paid a $60 million non-refundable capacity reservation fee. This reservation fee is recorded in "Other current assets" and "Other assets" on the consolidated condensed balance sheets within the short-term or long-term classification, as appropriate, and amortized over the Commitment Period. In addition, the Company pre-paid GlobalFoundries $195 million for future wafer purchases, which will be credited back to the Company as a portion of the price of wafers purchased beginning in the third quarter of calendar year 2023. This prepayment is currently recorded in "Long-term prepaid wafers" on the consolidated condensed balance sheets.
v3.22.2
Legal Matters
 3 Months Ended
Jun. 25, 2022
Commitments and Contingencies Disclosure [Abstract]  
Legal Matters Legal Matters
From time to time, we are involved in legal proceedings concerning matters arising in connection with the conduct of our business activities.  We regularly evaluate the status of legal proceedings in which we are involved in order to assess whether a loss is probable or there is a reasonable possibility that a loss or additional loss may have been incurred, and to determine if accruals are appropriate.  We further evaluate each legal proceeding to assess whether an estimate of possible loss or range of loss can be made.    

Based on current knowledge, management does not believe that there are any pending matters that could potentially have a material adverse effect on our business, financial condition, results of operations or cash flows.  However, we are engaged in various legal actions in the normal course of business.  There can be no assurances in light of the inherent uncertainties involved in any potential legal proceedings, some of which are beyond our control, and an adverse outcome in any legal proceeding could be material to our results of operations or cash flows for any particular reporting period.
v3.22.2
Stockholders' Equity
 3 Months Ended
Jun. 25, 2022
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Stockholders' Equity
Common Stock 

The Company issued an immaterial number of shares of common stock during the three months ended June 25, 2022, pursuant to the Company's equity incentive plans. The Company issued a net 0.1 million shares of common stock during the three months ended June 26, 2021, pursuant to the Company's equity incentive plans.

Share Repurchase Program   
In January 2021, the Board of Directors authorized the repurchase of an additional $350 million of the Company’s common stock. Since inception, approximately $213.9 million of the Company’s common stock has been repurchased under the 2021 share repurchase program, leaving approximately $136.1 million available for repurchase under this plan as of June 25, 2022.  During the three months ended June 25, 2022, the Company repurchased 0.7 million shares of its common stock under the 2021 plan for $56.4 million, at an average cost of $77.78 per share.
v3.22.2
Segment Information
 3 Months Ended
Jun. 25, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
We determine our operating segments in accordance with FASB guidelines.  Our Chief Executive Officer (“CEO”) has been identified as the chief operating decision maker under these guidelines. 

The Company operates and tracks its results in one reportable segment, but reports revenue in two product lines, Audio and High-Performance Mixed-Signal.  Our CEO receives and uses enterprise-wide financial information to assess financial performance and allocate resources, rather than detailed information at a product line level.  Additionally, our product lines have similar characteristics and customers.  They share support functions such as sales, public relations, supply chain management, various research and development and engineering support, in addition to the general and administrative functions of human resources, legal, finance and information technology.  Therefore, there is no complete, discrete financial information maintained for these product lines. Revenue by product line is disclosed in Note 10 - Revenues.
v3.22.2
Subsequent Events
 3 Months Ended
Jun. 25, 2022
Subsequent Events [Abstract]  
Subsequent Events Subsequent EventIn July 2022, the Board of Directors authorized the repurchase of an additional $500 million of the Company's common stock, in addition to the $136.1 million remaining from the Board's previous share repurchase authorization in January 2021, described above in Note 15.
v3.22.2
Recently Issued Accounting Pronouncements (Policies)
 3 Months Ended
Jun. 25, 2022
Accounting Policies [Abstract]  
Recently Issued Accounting Pronouncements
In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured at the acquisition date in accordance with Revenue from Contracts with Customers (Topic 606) as if the acquirer had originated the contracts. Prior to the issuance of this ASU, contract assets and liabilities were recognized at fair value on the acquisition date. This ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within that fiscal year, with early adoption permitted, and should be applied on a prospective basis. The Company is currently evaluating the impact of this guidance, but does not expect a material impact to the financial statements upon adoption.

In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832) – Disclosures by Business Entities about Government Assistance, which requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution type accounting model. The disclosures would require information about the nature and related policy used for the transactions, the line items on the balance sheet and income statement that are affected and the amounts applicable to each financial statement line item, and significant terms and conditions of the transactions. This ASU is effective for financial statements issued for annual periods beginning after December 15, 2021, with early adoption permitted, and can be applied on a prospective or retrospective basis. The Company is currently evaluating the impact of this guidance, but does not expect a material impact to the financial statements upon adoption.
Fair Value of Financial Instruments
The Company has determined that the only material assets and liabilities in the Company’s financial statements that are required to be measured at fair value on a recurring basis are the Company’s cash equivalents and marketable securities portfolio.  The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

•Level 1 - Quoted prices in active markets for identical assets or liabilities.
•Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company’s cash equivalents and marketable securities portfolio consist of money market funds, commercial paper, debt securities, non-U.S. government securities, U.S Treasury securities and securities of U.S. government-sponsored enterprises and are reflected on our consolidated condensed balance sheets under the headings cash and cash equivalents,
marketable securities, and long-term marketable securities.  The Company determines the fair value of its marketable securities portfolio by obtaining non-binding market prices from third-party pricing providers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value.
Revenues
Disaggregation of revenue

We disaggregate revenue from contracts with customers by product line and ship to location of the customer. Sales are designated in the respective product line categories of Audio and High-Performance Mixed-Signal.
Performance obligations

The Company's single performance obligation is the delivery of promised goods to the customer. The promised goods are explicitly stated in the customer contract and are comprised of either a single type of good or a series of goods that are substantially the same, have the same pattern of transfer to the customer, and are neither capable of being distinct nor separable from the other promised goods in the contract. This performance obligation is satisfied upon transfer of control of the promised goods to the customer, as defined per the shipping terms within the customer's contract. The vast majority of the Company's contracts with customers have an original expected term length of one year or less. As allowed by Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers, the Company has not disclosed the value of any unsatisfied performance obligations related to these contracts.

The Company’s products typically include a warranty period of one to three years. These warranties qualify as assurance-type warranties, as goods can be returned for product non-conformance and defect only. As such, these warranties are accounted for under ASC 460, Guarantees, and are not considered a separate performance obligation.

Contract balances

Payments are typically due within 30 to 60 days of invoicing and terms do not include significant financing components or noncash consideration. There have been no material impairment losses on accounts receivable. There are no material contract assets or contract liabilities recorded on the consolidated condensed balance sheets.

Transaction price
The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised goods to the customer. Fixed pricing is the consideration that is agreed upon in the customer contract. Variable pricing includes rebates, rights of return, warranties, price protection and stock rotation. Rebates are granted as a customer account credit, based on agreed-upon sales thresholds. Rights of return and warranty costs are estimated using the "most likely amount" method by reviewing historical returns to determine the most likely customer return rate and applying materiality thresholds. Price protection includes price adjustments available to certain distributors based upon established book price and a stated adjustment period. Stock rotation is also available to certain distributors based on a stated maximum of prior billings.

The Company estimates all variable consideration at the most likely amount that it expects to be entitled to receive. The estimate is based on current and historical information, including recent sales activity and pricing, available to the Company. Variable consideration is only included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company defers all variable consideration that does not meet the revenue recognition criteria.
Segment Information
We determine our operating segments in accordance with FASB guidelines.  Our Chief Executive Officer (“CEO”) has been identified as the chief operating decision maker under these guidelines. 

The Company operates and tracks its results in one reportable segment, but reports revenue in two product lines, Audio and High-Performance Mixed-Signal.  Our CEO receives and uses enterprise-wide financial information to assess financial performance and allocate resources, rather than detailed information at a product line level.  Additionally, our product lines have similar characteristics and customers.  They share support functions such as sales, public relations, supply chain management, various research and development and engineering support, in addition to the general and administrative functions of human resources, legal, finance and information technology.  Therefore, there is no complete, discrete financial information maintained for these product lines. Revenue by product line is disclosed in Note 10 - Revenues.
Marketable Securities The Company’s investments have been classified as available-for-sale securities in accordance with U.S. GAAP.  Marketable securities are categorized on the consolidated condensed balance sheet as "Marketable securities", within the short-term or long-term classification, as appropriate.
v3.22.2
Marketable Securities (Tables)
 3 Months Ended
Jun. 25, 2022
Marketable Securities [Abstract]  
Schedule of Available-for-sale Securities The following table is a summary of available-for-sale securities at June 25, 2022 (in thousands):
As of June 25, 2022Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
(Net Carrying
Amount)
Corporate debt securities$70,540 $— $(2,577)$67,963 
Non-U.S. government securities510 — (11)499 
U.S. Treasury securities5,730 — (197)5,533 
Agency discount notes385 — (18)367 
Total securities$77,165 $— $(2,803)$74,362 
The following table is a summary of available-for-sale securities at March 26, 2022 (in thousands):
As of March 26, 2022Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
(Net Carrying
Amount)
Corporate debt securities$70,296 $2 $(2,133)$68,165 
Non-U.S. government securities509 — (9)500 
U.S. Treasury securities5,483 — (169)5,314 
Agency discount notes385 — (14)371 
Total securities$76,673 $2 $(2,325)$74,350 
Schedule of Cost and Estimated Fair Value of Available-for-sale Securities by Contractual Maturity
The cost and estimated fair value of available-for-sale securities by contractual maturities were as follows (in thousands):
June 25, 2022March 26, 2022
AmortizedEstimatedAmortizedEstimated
CostFair ValueCostFair Value
Within 1 year$18,744 $18,397 $10,697 $10,601 
After 1 year58,421 55,965 65,976 63,749 
Total$77,165 $74,362 $76,673 $74,350 
v3.22.2
Fair Value of Financial Instruments (Tables)
 3 Months Ended
Jun. 25, 2022
Fair Value Disclosures [Abstract]  
Schedule of Fair Value of Financial Assets and Liabilities
The following summarizes the fair value of our financial instruments at June 25, 2022 (in thousands):
Quoted Prices
in Active
Markets for
Identical
Assets
Level 1		Significant
Other
Observable
Inputs
Level 2		Significant
Unobservable
Inputs
Level 3		Total
Assets:    
Cash equivalents    
Money market funds$302,044 $— $— $302,044 
Available-for-sale securities    
Corporate debt securities$— $67,963 $— $67,963 
Non-U.S. government securities— 499 — 499 
U.S. Treasury securities5,533 — — 5,533 
Agency discount notes— 367 — 367 
$5,533 $68,829 $— $74,362 

The following summarizes the fair value of our financial instruments at March 26, 2022 (in thousands):
Quoted Prices
in Active
Markets for
Identical
Assets
Level 1		Significant
Other
Observable
Inputs
Level 2		Significant
Unobservable
Inputs
Level 3		Total
Assets:
Cash equivalents    
Money market funds$217,151 $— $— $217,151 
Commercial paper— 249 — 249 
$217,151 $249 $— $217,400 
Available-for-sale securities    
Corporate debt securities$— $68,165 $— $68,165 
Non-U.S. government securities— 500 — 500 
U.S. Treasury securities5,314 — — 5,314 
Agency discount notes— 371 — 371 
$5,314 $69,036 $— $74,350 
v3.22.2
Derivative Financial Instruments (Tables)
 3 Months Ended
Jun. 25, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Before-Tax Effect of Derivative Instruments Not Designated as Hedging Instruments
The before-tax effect of derivative instruments not designated as hedging instruments was as follows (in thousands):
Three Months Ended
June 25,June 26,
20222021Location
Gain (loss) recognized in income:
Foreign currency forward contracts$(219)$332 Other income (expense)
v3.22.2
Accounts Receivable, net (Tables)
 3 Months Ended
Jun. 25, 2022
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
Components of Accounts Receivable, net The following are the components of accounts receivable, net (in thousands):
June 25,March 26,
20222022
Gross accounts receivable$206,272 $240,264 
Allowance for doubtful accounts— — 
Accounts receivable, net$206,272 $240,264 
v3.22.2
Inventories (Tables)
 3 Months Ended
Jun. 25, 2022
Inventory Disclosure [Abstract]  
Schedule of Inventories Inventories are comprised of the following (in thousands):
June 25,March 26,
20222022
Work in process$109,461 $95,188 
Finished goods64,909 43,248 
$174,370 $138,436 
v3.22.2
Acquisition (Tables)
 3 Months Ended
Jun. 25, 2022
Business Combination and Asset Acquisition [Abstract]  
Allocation of Purchase Price
The following table presents the allocation of the purchase price at the date of acquisition (in thousands):

July 20, 2021
Cash$4,924 
Account receivable6,725 
Inventory7,675 
Manufacturing advances8,502 
Other current assets321 
Intangibles163,700 
Goodwill148,418 
Other non-current assets453 
Current liabilities(2,927)
Deferred tax liabilities(25,016)
Total purchase price$312,775 
v3.22.2
Revenues (Tables)
 3 Months Ended
Jun. 25, 2022
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
Total net sales based on the product line disaggregation criteria described above are shown in the table below (in thousands).
Three Months Ended
June 25,June 26,
20222021
Audio Products$254,496 $217,355 
High-Performance Mixed-Signal Products139,143 59,898 
$393,639 $277,253 

The geographic regions that are reviewed are China, the United States, and the rest of the world. Total net sales based on the geographic disaggregation criteria described are as follows (in thousands):
Three Months Ended
June 25,June 26,
20222021
China$261,491 $168,325 
United States7,197 6,019 
Rest of World124,951 102,909 
$393,639 $277,253 
v3.22.2
Income Taxes (Tables)
 3 Months Ended
Jun. 25, 2022
Income Tax Disclosure [Abstract]  
Schedule of Provision for Income Taxes and Effective Tax Rates The following table presents the provision for income taxes (in thousands) and the effective tax rates:
Three Months Ended
June 25,June 26,
20222021
Income before income taxes$55,087 $19,622 
Provision for income taxes$15,380 $2,413 
Effective tax rate27.9 %12.3 %
v3.22.2
Net Income Per Share (Tables)
 3 Months Ended
Jun. 25, 2022
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table details the calculation of basic and diluted earnings per share for the three months ended June 25, 2022 and June 26, 2021 (in thousands, except per share amounts):
Three Months Ended
June 25,June 26,
20222021
Numerator:  
Net income$39,707 $17,209 
Denominator:  
Weighted average shares outstanding56,277 57,582 
Effect of dilutive securities1,527 1,931 
Weighted average diluted shares57,804 59,513 
Basic earnings per share$0.71 $0.30 
Diluted earnings per share$0.69 $0.29 
v3.22.2
Marketable Securities (Schedule of Available-for-sale Securities) (Details) - USD ($)
$ in Thousands
Jun. 25, 2022
Mar. 26, 2022
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 77,165 $ 76,673
Gross Unrealized Gains 0 2
Gross Unrealized Losses (2,803) (2,325)
Estimated Fair Value (Net Carrying Amount) 74,362 74,350
Corporate debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 70,540 70,296
Gross Unrealized Gains 0 2
Gross Unrealized Losses (2,577) (2,133)
Estimated Fair Value (Net Carrying Amount) 67,963 68,165
Non-U.S. government securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 510 509
Gross Unrealized Gains 0 0
Gross Unrealized Losses (11) (9)
Estimated Fair Value (Net Carrying Amount) 499 500
U.S. Treasury securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 5,730 5,483
Gross Unrealized Gains 0 0
Gross Unrealized Losses (197) (169)
Estimated Fair Value (Net Carrying Amount) 5,533 5,314
Agency discount notes    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 385 385
Gross Unrealized Gains 0 0
Gross Unrealized Losses (18) (14)
Estimated Fair Value (Net Carrying Amount) $ 367 $ 371
v3.22.2
Marketable Securities (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 25, 2022
Mar. 26, 2022
Debt Securities, Available-for-sale [Line Items]    
Gross unrealized losses $ 2,803 $ 2,325
Amortized cost on available for sale securities held at gross unrealized loss 77,200 75,500
Securities in a continuous unrealized loss position for more than 12 months, amortized cost 9,000 3,500
Securities in a continuous unrealized loss position for more than 12 months, aggregate unrealized loss $ 400 $ 100
Minimum    
Debt Securities, Available-for-sale [Line Items]    
Maturity period for highly-rated securities 1 year  
Maximum    
Debt Securities, Available-for-sale [Line Items]    
Maturity period for highly-rated securities 3 years  
v3.22.2
Marketable Securities (Schedule of Cost and Estimated Fair Value of Available-for-sale Securities by Contractual Maturity) (Details) - USD ($)
$ in Thousands
Jun. 25, 2022
Mar. 26, 2022
Amortized Cost    
Within 1 year $ 18,744 $ 10,697
After 1 year 58,421 65,976
Amortized Cost 77,165 76,673
Estimated Fair Value    
Within 1 year 18,397 10,601
After 1 year 55,965 63,749
Estimated Fair Value (Net Carrying Amount) $ 74,362 $ 74,350
v3.22.2
Fair Value of Financial Instruments (Narrative) (Details)
Jun. 25, 2022
USD ($)
Fair Value Disclosures [Abstract]  
Amounts drawn under the credit facility $ 0
Credit facility, fair value $ 0
v3.22.2
Fair Value of Financial Instruments (Schedule of Fair Value of Financial Assets and Liabilities) (Details) - USD ($)
$ in Thousands
Jun. 25, 2022
Mar. 26, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents   $ 217,400
Available-for-sale securities $ 74,362 74,350
Quoted Prices in Active Markets for Identical Assets Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents   217,151
Available-for-sale securities 5,533 5,314
Significant Other Observable Inputs Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents   249
Available-for-sale securities 68,829 69,036
Significant Unobservable Inputs Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents   0
Available-for-sale securities 0 0
Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 67,963 68,165
Corporate debt securities | Quoted Prices in Active Markets for Identical Assets Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Corporate debt securities | Significant Other Observable Inputs Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 67,963 68,165
Corporate debt securities | Significant Unobservable Inputs Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Non-U.S. government securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 499 500
Non-U.S. government securities | Quoted Prices in Active Markets for Identical Assets Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Non-U.S. government securities | Significant Other Observable Inputs Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 499 500
Non-U.S. government securities | Significant Unobservable Inputs Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
U.S. Treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 5,533 5,314
U.S. Treasury securities | Quoted Prices in Active Markets for Identical Assets Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 5,533 5,314
U.S. Treasury securities | Significant Other Observable Inputs Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
U.S. Treasury securities | Significant Unobservable Inputs Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Agency discount notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 367 371
Agency discount notes | Quoted Prices in Active Markets for Identical Assets Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Agency discount notes | Significant Other Observable Inputs Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 367 371
Agency discount notes | Significant Unobservable Inputs Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 302,044 217,151
Money market funds | Quoted Prices in Active Markets for Identical Assets Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 302,044 217,151
Money market funds | Significant Other Observable Inputs Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Money market funds | Significant Unobservable Inputs Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents $ 0 0
Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents   249
Commercial paper | Quoted Prices in Active Markets for Identical Assets Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents   0
Commercial paper | Significant Other Observable Inputs Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents   249
Commercial paper | Significant Unobservable Inputs Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents   $ 0
v3.22.2
Derivative Financial Instruments (Details)
$ in Thousands
 3 Months Ended
Jun. 25, 2022
USD ($)
derivtive
Jun. 26, 2021
USD ($)
Derivative Instruments, Gain (Loss) [Line Items]    
Number of foreign currency derivatives held | derivtive 1  
Notional value of foreign currency forward contract $ 1,800  
Foreign currency forward contracts | Not Designated as Hedging Instrument    
Derivative Instruments, Gain (Loss) [Line Items]    
Gain (loss) recognized in income $ (219) $ 332
v3.22.2
Accounts Receivable, net (Components of Accounts Receivable, net) (Details) - USD ($)
$ in Thousands
Jun. 25, 2022
Mar. 26, 2022
Accounts Receivable, after Allowance for Credit Loss [Abstract]    
Gross accounts receivable $ 206,272 $ 240,264
Allowance for doubtful accounts 0 0
Accounts receivable, net $ 206,272 $ 240,264
v3.22.2
Inventories (Schedule of Inventories) (Details) - USD ($)
$ in Thousands
Jun. 25, 2022
Mar. 26, 2022
Inventory Disclosure [Abstract]    
Work in process $ 109,461 $ 95,188
Finished goods 64,909 43,248
Total inventories $ 174,370 $ 138,436
v3.22.2
Acquisition (Narrative) (Details) - Lion Semiconductor, Inc. - USD ($)
$ in Millions
 3 Months Ended
Jul. 20, 2021
Dec. 25, 2021
Jun. 25, 2022
Business Acquisition [Line Items]      
Outstanding share capital 100.00%    
Total consideration transferred $ 280.5    
Cash acquired 4.9    
Consideration paid   $ 1.2  
Additional merger consideration subject to indemnity and adjustment provisions     $ 31.0
Merger consideration - retention $ 25.4    
v3.22.2
Acquisition (Allocation of Purchase Price) (Details) - USD ($)
$ in Thousands
Jun. 25, 2022
Mar. 26, 2022
Jul. 20, 2021
Business Acquisition [Line Items]      
Goodwill $ 435,936 $ 435,791  
Lion Semiconductor, Inc.      
Business Acquisition [Line Items]      
Cash     $ 4,924
Account receivable     6,725
Inventory     7,675
Manufacturing advances     8,502
Other current assets     321
Intangibles     163,700
Goodwill     148,418
Other non-current assets     453
Current liabilities     (2,927)
Deferred tax liabilities     (25,016)
Total purchase price     $ 312,775
v3.22.2
Revolving Credit Facility (Details) - Second Amended Credit Agreement Revolving Credit Facility - USD ($)
Jul. 08, 2021
Jun. 25, 2022
Line of Credit Facility [Line Items]    
Line of credit facility maximum borrowing capacity $ 300,000,000  
Debt covenant, exclusion of unrestricted cash and cash equivalents for ratio of consolidated funded indebtedness $ 200,000,000  
Debt covenant, maximum consolidated net leverage ratio 3.00  
Debt covenant, minimum consolidated interest coverage ratio 3.00  
Amount outstanding   $ 0
Minimum    
Line of Credit Facility [Line Items]    
Line of credit facility, unused capacity, commitment fee percentage 0.175%  
Maximum    
Line of Credit Facility [Line Items]    
Line of credit facility, unused capacity, commitment fee percentage 0.275%  
Base Rate | Minimum    
Line of Credit Facility [Line Items]    
Basis spread on variable rate 0.00%  
Base Rate | Maximum    
Line of Credit Facility [Line Items]    
Basis spread on variable rate 0.75%  
London Interbank Offered Rate (LIBOR) | Minimum    
Line of Credit Facility [Line Items]    
Basis spread on variable rate 1.00%  
London Interbank Offered Rate (LIBOR) | Maximum    
Line of Credit Facility [Line Items]    
Basis spread on variable rate 1.75%  
v3.22.2
Revenues - Summary of Product Lines (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 25, 2022
Jun. 26, 2021
Disaggregation of Revenue [Line Items]    
Net sales $ 393,639 $ 277,253
Audio Products    
Disaggregation of Revenue [Line Items]    
Net sales 254,496 217,355
High-Performance Mixed-Signal Products    
Disaggregation of Revenue [Line Items]    
Net sales $ 139,143 $ 59,898
v3.22.2
Revenues - Summary of Geographic Disaggregation (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 25, 2022
Jun. 26, 2021
Disaggregation of Revenue [Line Items]    
Net sales $ 393,639 $ 277,253
China    
Disaggregation of Revenue [Line Items]    
Net sales 261,491 168,325
United States    
Disaggregation of Revenue [Line Items]    
Net sales 7,197 6,019
Rest of World    
Disaggregation of Revenue [Line Items]    
Net sales $ 124,951 $ 102,909
v3.22.2
Revenues - Narrative (Details)
 3 Months Ended
Jun. 25, 2022
Minimum  
Disaggregation of Revenue [Line Items]  
Product warranty, term 1 year
Maximum  
Disaggregation of Revenue [Line Items]  
Product warranty, term 3 years
v3.22.2
Income Taxes (Provision for Income Taxes) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 25, 2022
Jun. 26, 2021
Income Tax Disclosure [Abstract]    
Income before income taxes $ 55,087 $ 19,622
Provision for income taxes $ 15,380 $ 2,413
Effective tax rate 27.90% 12.30%
v3.22.2
Income Taxes (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 25, 2022
Jun. 26, 2021
Income Tax Disclosure [Abstract]    
Provision for income taxes $ 15,380 $ 2,413
Effective tax rate 27.90% 12.30%
Unrecognized tax benefits that would impact effective tax rate $ 32,900  
Balance of accrued interest and penalties, net of tax 5,400  
Estimate of possible loss 170,500  
Estimate of possible loss, penalties expense $ 63,700  
v3.22.2
Net Income Per Share (Calculation of Basic and Diluted Earnings (Loss) Per Share) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended
Jun. 25, 2022
Jun. 26, 2021
Numerator:    
Net income $ 39,707 $ 17,209
Denominator:    
Weighted average shares outstanding (in shares) 56,277 57,582
Effect of dilutive securities (in shares) 1,527 1,931
Weighted average diluted shares (in shares) 57,804 59,513
Basic earnings per share (in dollars per share) $ 0.71 $ 0.30
Diluted earnings per share (in dollars per share) $ 0.69 $ 0.29
v3.22.2
Net Income Per Share (Narrative) (Details) - shares
shares in Thousands
 3 Months Ended
Jun. 25, 2022
Jun. 26, 2021
Earnings Per Share [Abstract]    
Weighted average shares outstanding excluded from diluted calculation (in shares) 386 114
v3.22.2
Commitment and Contingencies (Details)
$ in Millions
 3 Months Ended
Jun. 25, 2022
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Capacity reservation fee $ 60
Amount agreed to pre-pay $ 195
v3.22.2
Stockholders' Equity (Common Stock) (Details) - shares
shares in Millions
 3 Months Ended
Jun. 25, 2022
Jun. 26, 2021
Stockholders' Equity Note [Abstract]    
Common stock issued as part of stock incentive plan (in shares) 0.0 0.1
v3.22.2
Stockholders' Equity (Share Repurchase Program) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 18 Months Ended
Jun. 25, 2022
Jun. 26, 2021
Jun. 25, 2022
Jan. 31, 2021
Equity, Class of Treasury Stock [Line Items]        
Common stock repurchased $ 56,383 $ 12,501    
January 2021 Repurchase Program        
Equity, Class of Treasury Stock [Line Items]        
Common stock approved under the share repurchase program       $ 350,000
Common stock repurchased 56,400   $ 213,900  
Common stock available for repurchase $ 136,100   $ 136,100  
Common stock repurchased (in shares) 700,000      
Average cost per share repurchased (in dollars per share) $ 77.78      
v3.22.2
Segment Information (Details)
 3 Months Ended
Jun. 25, 2022
product_line
segment
Segment Reporting [Abstract]  
Number of reportable segments | segment 1
Number of product lines | product_line 2
v3.22.2
Subsequent Events (Details) - USD ($)
$ in Millions
 1 Months Ended
Jul. 31, 2022
Jun. 25, 2022
January 2021 Repurchase Program    
Subsequent Event [Line Items]    
Common stock available for repurchase   $ 136.1
Subsequent Event | July 2022 Repurchase Program    
Subsequent Event [Line Items]    
Stock repurchase program, additional authorized amount $ 500.0